BlackRock Credit Allocation Income Trust (BTZ)

FairStock Score: 60/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a value investor, I begin with the asset: BlackRock Credit Allocation Income Trust is a closed-end fund holding global fixed income, mostly around BBB credit, with corporate bonds, high-yield bonds, and bank loans. The BlackRock name and a 10.47% yield may attract income seekers, but a fund is not a business with a durable moat; it is a portfolio managed for a fee. The numbers on the close of 2026-10-13 tell a mixed story. At $9.40, FairStock calculates a P/B of 0.66 and a Graham Number of $12.37, giving a 24.01% margin of safety. The P/E is 15.16 and the dividend yield is 10.47%, while beta is 0.74, so the shares have been less volatile than the market. But the quality signals are weak: ROE is 5.51%, ROCE is 3.10%, Piotroski F-Score is 2/9, and Altman Z-Score is 0.82. Debt/equity is 0.46, which is meaningful for a fund that uses leverage. The FairStock Score is 60/100. The 52-week range of $9.25 to $11.18 puts the current price near the low. There is no Lynch category because only 0 years of filed results are available, and FairStock needs three; revenue and profit growth are N/A. So I see a cheap-looking, high-yielding closed-end fund with a famous manager, but also low returns on capital, weak financial-strength scores, and insufficient reported history. The discount may be real, but it is not a business compounding at high rates. It is a yield vehicle to watch, not a fortressed franchise.

In plain English: BlackRock Credit Allocation Income Trust is a closed-end fund that invests in bonds and loans around the world and is managed by BlackRock. Its profitability and safety checks look modest to weak, but the shares trade below accounting value and below one fair-value estimate while paying a large income distribution. At the 2026-10-13 close, the price looks closer to cheap than expensive versus its numbers, though the weak scores mean the discount carries risk.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer